E3 Capital and Lion’s Head local weather fund hits first shut at $48M to again African startups


The E3 Low Carbon Financial system Fund for Africa (E3LCEF), a fund by early-stage VC E3 Capital, and rising markets-focused funding financial institution Lion’s Head World Companions, has hit the primary shut at $48.1 million.

The E3LCEF restricted companions embody FMO, the Dutch entrepreneurial growth financial institution; Swedfund Worldwide AB, the Swedish growth finance establishment; Proparco, an AFD Group subsidiary and personal sector growth investor, and KfW, a growth financial institution, in partnership with BMZ, the German ministry for financial cooperation and growth.

The fund targets to shut at $100 million, becoming a member of the rising record of funds backing startups in Africa’s local weather tech sector. The fund will present preliminary and follow-on funding to startups supporting low carbon economies resembling photo voltaic suppliers and EV startups.

“African companies are beginning to emerge with clear product market-fit, and a powerful business potential on the core inside the low carbon economic system. The standard of entrepreneurs we’re seeing is hanging,” E3 Capital founder and managing accomplice, Paras Patel, stated in a press release.

“We’re obsessed with serving to African entrepreneurs construct the subsequent technology of revolutionary companies that innovate, scale and influence the lives of all of us within the coming years,” stated Patel.

E3 Capital accomplice Vladimir Dugin instructed TechCrunch that the VC, which backs seed to Collection A startups, usually invests between $500,000 and $3 million. The brand new fund will put money into companies throughout sub-Saharan Africa.

E3 Capital, an lively investor in Africa, presently manages the €75 million Vitality Entry Ventures Fund I (EAVFI), which has made 15 investments in decentralized vitality companies in East, West, and Southern Africa.

Asset supervisor Lion’s Head has $700 million underneath its portfolio, and has a subsidiary that gives company finance advisory providers to governments, multilaterals, and personal corporations.

“We really feel this can be a nice time to again low-carbon companies in Africa that are beginning to see potential for substantial scale. The E3 group brings distinctive experience working with early-stage corporations throughout the continent and have demonstrated this capacity with their current portfolio which is beginning to present indicators of clear winners,” stated Lion’s Head CEO, Clemens Calice.

The E3LCEF and different climate-focused funds in Africa are offering the a lot wanted funding amid the capital crunch to founders main vitality transition efforts, and offering options that mitigate or assist communities address the consequences of local weather change.

Not too long ago-emerging funds embody Pan-African VC Novastar’s $200 million Africa Individuals + Planet Fund, which backs founders creating agriculture and local weather options on the continent. Local weather tech enterprise capital agency Equator additionally reached the preliminary shut of its fund to again seed and Collection A startups within the vitality, agriculture and mobility sectors.

Different African climate-focused funding autos which have raised capital not too long ago embody Satgana, AfricaGoGreen Fund (AAGF), which closed the second tranche of its fundraise in February, and the Vitality Entrepreneurs Development Fund (EEGF), which raised over $110 million final 12 months. Oxfam Novib and Goodwell launched a brand new fund to supply enterprise debt to startups on this area, as effectively.

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